BTC, which has risen for many days, has a slight correction.
Looking back now, the rise led by BTC has stimulated the rise of ETH and DeFi, while other types of tokens are relatively moderate and seem to have lost the nostalgia of market funds.
What’s behind it? Let’s take a closer look, it’s not necessarily right, for everyone to communicate.
1. The rising order BTC>ETH>DeFi
The DeFi from June to July is crazy, and the DeFi from August to October turns from hot to cold. After DeFi turned cooler, BTC started an upward trend. Now review the rising posture and find the rising sequence: BTC rises first, ETH rises, and finally DeFi bursts.
After DeFi rose in these two days, it began to pull back, that is, last night. DeFi tokens have also risen sharply. For DeFi head tokens, such as aave, uni, YFI, SNX, etc., aave has doubled the market in 3 days.
Of course, there is a premise that DeFi has risen so sharply, that is, DeFi has also fallen a lot. But if it doesn’t fall too much, it will definitely rebound strongly. After all, Air Coin cannot get up after falling.
2. Why does DeFi burst?
So the question is, why is the order of BTC>ETH>DeFi? The market is right, and it does so. As for the reason, let’s just guess.
Why is BTC rising? Institutions enter the market to buy bitcoins. After all, Grayscale has bought a lot of BTC and ETH, and Grayscale buys almost 1,000 BTC a day. Driven by funds, BTC climbed step by step, breaking through the US$13,000, 14,000, and 15,000.
Why is ETH rising? Grayscale also bought 2.5 million ETH. ETH is also a token that institutions like. ETH has a huge ecosystem. The king of the ETH public chain, everyone wants to surpass it, and no one can surpass it.
And ETH 2.0 will start on December 1, which is positive for the stimulus.
If BTC has institutional blessings and ETH has a positive 2.0 and rises, then where does DeFi’s leading coins: uni, aave, yfi, snx, etc. come from?
I want to come from the rise of BTC and ETH. When BTC and ETH rose in place for a period of time, the funds began to look for over-priced and potential currencies to buy, thereby promoting the rise of other tokens, this time I chose DeFi. Looking back, the reasons may be:
1. DeFi is decentralized finance. Assets are played. When BTC and ETH rise, the assets available for DeFi will increase, the tide will rise, and DeFi’s business funds will expand, so it is attracted by funds.
2. Look at the stories the blockchain market is telling: public chain, storage, DeFi, NFT, etc. The public chain is basically based on the potential momentum of ETH and DOT, and the storage of Filcecoin feels that it is being played all at once, and the NFT market is not yet mature. DeFi’s tokens are plummeting, but DeFi applications are iteratively updated in a visible way, and the amount of funds locked by DeFi has not decreased. This is like a company’s stock price is falling, but the company’s innovation ability remains the same, and its performance rise. There are not many options left to the market, and DeFi is the best option.
From this point of view, it makes sense to pull DeFi. Then when the bull market comes, BTC will go first, and DeFi will be the best option for funds to find value depressions. This may be a small exercise.
3. Other awkward public chains
From the perspective of making money, only those who are chasing funds have room to make money, and those who are abandoned by funds have less and less chances of turning over. Especially in places like Amber, there is a wave of hype and a wave of harvest.
A screenshot of an outage in the past few days is very interesting and can be savored.
Biden was elected president of the United States and is considering hiring crypto experts as financial advisers. What impact will this have on the crypto market? It is worth looking forward to.
Finally, AMPL ended a two-and-a-half-month period of deflation from October 18, and entered a low-inflation phase. AMPL kept inflation low for the 22nd day.
Comments
Post a Comment